QNB Group Financial Results for the Year Ended December 31, 2012

January 13, 2013 10:39 AM Eastern Time

DOHA, Qatar--(BUSINESS WIRE)--QNB
Group continued to record robust growth in profitability, with Net
Profit for 2012 exceeding QR8.3 billion, up by 11.1% compared to 2011.
These results, the highest ever achieved by the Group, demonstrated once
again its resilience and revenue-generating capacity, as well as
outstanding success in expanding the Group’s core business activities.

The Board of Directors is recommending to the General Assembly the
distribution of a cash dividend of 60% of the nominal share value (QR6.0
per share). The financial results for 2012 along with the profit
distribution are subject to Qatar Central Bank (QCB) approval.

Total assets increased by 21.5% to reach QR367 billion, the highest ever
achieved by the Bank. This was the result of a strong growth rate of
28.9% in loans and advances to reach QR250 billion. Meanwhile, customer
deposits recorded a solid growth of 34.9% to QR270 billion, resulting in
improved liquidity with the loans to deposits ratio reaching 92.6% at
year-end 2012.

The Bank was able to maintain the ratio of non-performing loans to total
loans at 1.3%, a level considered one of the lowest amongst banks in the
Middle East and Africa. The Group’s conservative policy in regard to
provisioning continued with the coverage ratio reaching 115% in 2012.

Total operating income including share of results of associates
increased to QR11.5 billion, up by 12.8% compared to 2011, as QNB Group
succeeded in achieving strong growth across the range of revenue sources.

The Group’s prudent cost control policy and strong revenue generating
capability allowed it to maintain its efficiency ratio (cost to income
ratio) at 16.8%, which is considered one of the best ratios among
financial institutions in the region.

Total Equity increased by 12.6% to reach QR48.0 billion as at 31
December 2012. The capital adequacy ratio reached 21.0% at year-end
2012, far higher than the regulatory requirements of QCB and the Basil
Committee.

QNB Group was able to record a strong return to shareholders, with the
return on average shareholder’s equity reaching 20.5% in 2012.

QNB Group's credit rating was affirmed during 2012 by Capital
Intelligence, Fitch, Moody’s and Standard & Poor's. QNB Group maintains
one of the highest ratings in the Middle East and North Africa (MENA)
Region. The Group’s ratings were affirmed post the announcement to
acquire National Société Générale Bank (NSGB), a reflection of the
confidence in its strategy and the management of its expansion plans.

The Group’s high credit ratings and outstanding asset quality allowed it
to be recognized as one the world’s 50 safest financial institutions by
Global Finance.

During 2012, QNB Group completed a number of transactions to further
solidify its presence in the MENA Region. The most significant
transaction was the agreement with Société Générale to acquire its full
stake of 77.17% in NSGB, the second largest private bank in Egypt.

The Bank has also concluded the acquisition of a 49% stake in the Bank
of Commerce and Development in Libya, the country’s leading private
sector bank. The Group’s stake in a number of institutions was also
increased. This included increasing ownership in the UAE-based
Commercial Bank International (CBI) from 24% to 40% and the Iraq-based
Mansour Bank from 23% to 51%.

With operations in 24 countries across Asia, Europe and Africa, the
Group is in a strong position to reach its 2017 vision to become a
Middle East and Africa Icon.

During 2012, two issuances under the Bank’s Euro Medium Term Note
Programme (EMTN Programme) were successfully launched each at US$1.0
billion, with very attractive rates. As part of ongoing efforts to
diversify the investor base, the London Certificates of Deposit (CD)
programme was effectively launched during the year. The Bank has also
successfully closed a US$1.8 billion three-year term loan facility at
competitive rates.

Currently, nearly 8,800 staff are employed by QNB Group, its
subsidiaries and associate companies having a branch network comprising
almost 400 branches and offices, with an ATM network that exceeds 800
machines. Upon the completion of the regulatory approvals to acquire
NSGB, the number of staff will increase to almost 13,000 with the branch
network at more than 560 supported by 1,150 ATM machines.